NYSE$U

Unity Software Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Unity's Q3 2024 results exceeded guidance, showing progress in strategic portfolio revenue and Adjusted EBITDA.

Unity's Q3 2024 strategic portfolio revenue reached $429 million, a 2% decrease year-over-year, exceeding guidance. The company's net loss was $125 million. Adjusted EBITDA was $92 million, also surpassing expectations. The company is focusing on fostering a culture of execution and discipline, accelerating product innovation, and strengthening customer relationships.

  • Unity's strategic portfolio revenue was $429 million, exceeding guidance.
  • Net loss for the quarter was $125 million, consistent with the previous year.
  • Adjusted EBITDA was $92 million, surpassing guidance.
  • The cancellation of the Runtime Fee and reversion to a subscription-based model has unblocked renewals and accelerated new relationships.

Headline financials

Total Revenue

$447M

Previous: $544M-18.0%
EPS

-$0.31

Previous: -$0.32+3.1%
Adjusted EBITDA

$91.7M

No prior period
Adjusted EBITDA Margin

21.0%

No prior period
Net Loss Margin

28.0%

No prior period
Net Cash from Operations

$122M

No prior period
Capital Expenditures

-$23.1M

Previous: -$44.6M+48.1%
Free Cash Flow

-$148M

Previous: -$169M+12.3%
Net Income

-$125M

Previous: -$124M-0.5%
Operating Income

-$127M

Previous: -$127M+0.2%
Gross Profit

$334M

Previous: $393M-14.9%
Cash & Equivalents

$1.41B

Previous: $1.51B-6.8%
Total Assets

$6.73B

Previous: $7.43B-9.4%
R&D Expense

$215M

Previous: $240M-10.3%
Stock-Based Comp

$105M

Previous: $147M-28.9%

Revenue & EPS history

Unity · Revenue · Quarterly

$447M

Q3 2024-18%vs Q3 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Unity · $544M total across 2 segments · Q3 2023

  • Grow Solutions
    $355M+106.8%
  • Create Solutions
    $189M+47.0%

Forward guidance

For the fourth quarter, Unity is guiding revenue for its strategic portfolio to $422 to $427 million and Adjusted EBITDA to $79 to $84 million for the total company.

Tailwinds

  • Revenue guidance for our strategic portfolio now at $1,703 to $1,708 million
  • Adjusted EBITDA of $363 to $368 million
  • New pricing changes will help drive consistent revenue growth in the double digit range for our core subscription business.
  • Unity 6 is designed to enable the creation of better games, built more quickly and more efficiently than ever before.
  • The entire gaming ecosystem functions better when Unity is delivering on its commitment to provide developers and publishers what they need to make and market great games.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+2.1%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+5.8%

Avg return

30 days after

58%

14 / 24 earnings

Positive

+30.4%

Q4 2024

Best reaction

-39.9%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-1.7%+6.9%
Q4 2025-26.3%-35.7%-33.1%
Q3 2025+18.1%+20.2%+27.6%
Q1 2025-3.1%+2.4%+17.9%
Q4 2024+30.4%+19.5%+0.4%
Q3 2024-5.4%-11.3%+27.9%
Q2 2024+11.6%+16.7%+13.9%
Q1 2024-10.0%-4.4%-28.3%
Q4 2023-0.8%-7.5%-13.7%
Q3 2023+3.6%+12.0%+25.5%
Q2 2023-9.2%-11.8%-18.1%
Q1 2023+14.8%+6.1%+28.4%
Q4 2022-12.7%-18.8%-21.3%
Q3 2022+17.1%+37.6%+42.8%
Q2 2022+11.7%+17.5%-22.1%
Q1 2022-39.9%-22.4%-18.0%
Q4 2021+6.5%+5.5%-12.7%
Q3 2021+8.2%+20.6%-14.2%
Q2 2020+18.2%+14.0%+26.1%
Q2 2021+10.1%+16.9%+21.7%
Q1 2021+3.3%+7.2%+23.6%
Q4 2020-13.3%-13.7%-36.7%
Q4 2019+9.6%+13.0%+49.9%
Q3 2020+8.7%+11.8%+44.4%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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